Analyst warns P3, general overcapacity could spark rate war

The effect of the mooted P3 alliance between liner carriers Maersk Line, Mediterranean Shipping Co., and CMA CGM could be more aggressive pricing behavior, according to Tan Hua Joo, executive consultant for Alphaliner. Speaking Wednesday at the TPM Asia conference in Shenzhen, organized by the Journal of Commerce , Tan argued the alliance would have little impact on the industry’s competitive balance, countering an argument made that it would bring stability to rates and capacity. “I disagree that the P3 will bring about more stability,” he said. “I believe it will drive further aggressive behavior from P3 and their competitors. It’s essentially an operational alliance, not cooperation on the sales side. How do you...